Introduction
In a financial world increasingly
influenced by big corporations and powerful alliances, it's easy to assume that
deep pockets dominate every market. However, Nithin Kamath, the co-founder and
CEO of Zerodha, India’s largest stockbroker by active clients disagrees.
While the financial ecosystem buzzes
with the news of Jio Financial Services (JFS) teaming up with BlackRock
to enter the Indian stockbroking space, Kamath offers a refreshing perspective:
it’s not the giants he fears — it's the passionate, hungry first-generation
entrepreneurs.
In this post, we’ll break down:
- Kamath’s views on the Jio-BlackRock joint venture
- Why he sees more danger from startup founders than
corporate behemoths
- What makes Zerodha’s philosophy stand out
- How Zerodha is performing financially
- What this means for the future of stockbroking in India
Let’s dive in.
The
Big Announcement: Jio and BlackRock Get SEBI Nod for Stockbroking
On June 2025, Jio Financial
Services and BlackRock, the world’s largest asset manager, received SEBI’s
approval for a stockbroking licence in India. This 50:50 joint venture is
set to combine:
- Jio’s massive digital distribution reach, thanks
to its telecom network
- BlackRock’s AI-powered Aladdin platform, which
helps in investment analytics and risk management
This move signals an ambitious entry
into retail broking — a field traditionally dominated by agile startups like
Zerodha, Groww, Upstox, and Angel One.
Nithin
Kamath’s Take: “It’s Great News — But Not a Threat”
Nithin Kamath took to X (formerly
Twitter) to respond to the growing chatter around this development. Instead of
sounding alarmed, he welcomed the move:
“Firstly, this is great news. The
biggest issue for the Indian markets is a lack of breadth in participation. We
are largely limited to the top 10 crore Indians. If anyone can expand the
markets beyond that, it is probably Jio.”
— Nithin Kamath, X/@Nithin0dha
He highlighted a key challenge in
Indian retail investing — limited participation. Only a small portion of
India's population actively invests in stock markets. Kamath believes that
Jio’s mass-scale distribution might actually help solve this issue by bringing
more people into the investing ecosystem.
Why
First‑Generation Founders Are the Real Competition
Despite praising Jio’s potential,
Kamath added a deeper insight into what really keeps him on his toes:
“I still feel our real competition
is going to be more from first‑generation founders who are running, breathing
and always thinking about broking. This is not a business where having deep
pockets means you have a large moat.”
— Nithin Kamath on X
This statement captures Kamath’s
core philosophy:
- Stockbroking is not just about money — it's about mindset, culture, and obsession.
- First-gen founders,
like himself, build products and services by living and breathing their
industry.
- They understand the nuances, customer needs, and market
behaviors at a micro level, which large corporate entities may often
overlook.
This is a sharp reminder that
passion, innovation, and agility often outperform money and muscle.
Zerodha’s
Unique Business Philosophy
Zerodha has always been an outlier
in the financial services world. Kamath again stressed that the company isn’t
chasing "vanity metrics" like:
- Number of users
- Funding rounds
- Hype or media attention
Instead, the goal remains simple:
“The idea is to stay profitable and
ensure that we stick to the principles and philosophies that have got us this
far. At the heart of our philosophy is always doing the right thing for
customers.”
This customer-first approach is what
helped Zerodha stand out, even when it was bootstrapped and self-funded in a
venture capital-dominated space.
What
are “Vanity Metrics”?
Vanity metrics are figures that look
impressive but don't necessarily translate into long-term success. For example:
- Having 10 million app downloads doesn’t mean users are
engaged.
- A $100 million funding round doesn't equal
profitability.
Zerodha focuses on real metrics
like:
- Active investors
- Revenue per user
- Long-term client trust
- Profitability
Zerodha’s
Impressive Financial Performance
While Kamath may sound humble and
focused on customer values, the numbers tell a story of massive success:
| Metric | FY 2023–24 | FY 2022–23 | Growth |
|---|---|---|---|
| Operating Revenue | ₹9,372.1 crore | ₹6,832.8 crore | +37.16% |
| Consolidated PAT | ₹5,496.3 crore | ₹2,909 crore | +88.95% |
This growth is not just impressive —
it’s unprecedented in the Indian broking sector. All this while being
bootstrapped and completely profitable.
What
Makes Zerodha Different from the Rest?
Here are a few unique principles
that guide Zerodha:
1.
Bootstrapped and Profitable from Day One
While most fintech startups rely on
external funding, Zerodha has grown purely through revenue and reinvestment.
2.
Transparent Pricing
Zerodha was one of the first to
offer zero brokerage for equity delivery and low fees for intraday and
F&O trades — a model many others copied later.
3.
Technology Focused
Their platform Kite is light, fast,
and intuitive — built for traders, by traders.
4.
Customer-Centric Culture
Whether it's the Rainmatter
initiative (supporting Indian fintech startups) or educational content via
Varsity, Zerodha has always prioritized user education and empowerment.
Jio-BlackRock’s
Strength: Market Expansion
While Zerodha isn’t intimidated,
Kamath admits one big strength the Jio-BlackRock duo brings to the table — distribution.
With Jio’s access to millions of
mobile users and BlackRock’s tech, the partnership can:
- Reach Tier 2 and Tier 3 cities more easily
- Encourage first-time investors
- Simplify investing using AI tools
In that sense, Jio entering
stockbroking might grow the market rather than steal it from existing
players. Kamath seems to believe there’s enough room for multiple winners.
The
Bigger Picture: Is the Indian Retail Market Big Enough?
Let’s understand some context:
- India has a population of 1.4+ billion.
- Only around 10 crore (100 million) people
actively invest in the markets.
- That’s less than 7% of the population.
If Jio can help bring the next 10
crore Indians into investing, the entire industry could double. So rather than
being a threat, Jio-BlackRock could expand the pie.
What
This Means for Investors and Traders
For retail investors and traders,
this competition is good news:
More Choice
With more players in the market,
consumers get better services, more features, and lower costs.
Tech Innovation
Companies will need to innovate
continuously to keep users engaged.
Education and Accessibility
Companies like Jio can reach areas
where traditional brokers can’t. This means better access and education for
first-time investors.
Human
Touch: The Story Behind the Success
Nithin Kamath’s story resonates
because it’s real. A first-generation entrepreneur who built something massive
from scratch — without VC money, without big ads — just by doing the right
thing consistently.
In many ways, Kamath’s journey
reflects the power of grit over glamour. That’s why his voice matters
when he talks about competition.
He’s not afraid of billion-dollar
alliances.
He’s watching the young, hungry founder sitting in a small town,
building the next big thing in broking. And he sees himself in them.
Final
Thoughts: Can Zerodha and Jio Coexist?
The short answer: Yes.
Zerodha and Jio may play different
roles in India’s evolving stock market:
- Zerodha:
Tech-savvy traders, value-conscious users, long-time investors
- Jio-BlackRock:
First-time investors, Tier 2/3 cities, mass-market onboarding
This is not a winner-takes-all
market. The ecosystem will thrive with more participation, better tools, and
deeper education.
And as Kamath rightly says, the real
race is not about funding — it's about staying true to your principles while
building value for customers.
